KOSPI Rises Only 0.38% Amid FOMC Caution

Institution Alone Net Buys Stocks Worth 113 Billion Won

Despite the resolution of the Credit Suisse (CS) crisis, the cautious sentiment ahead of the March Federal Open Market Committee (FOMC) meeting led to limited movement in the KOSPI on the 21st.

[Image source=Yonhap News]

The KOSPI closed at 2388.35, up 0.38% (9.15 points) from the previous trading day. The index opened at 2396.54, up 0.73% from the previous day, and even approached reclaiming the 2400 level during the session. However, as selling pressure from individual and foreign investors increased, the gains narrowed toward the end of the trading day. Individual and foreign investors sold stocks worth 83.8 billion KRW and 55.3 billion KRW respectively, while institutions were the sole net buyers with purchases totaling 113.7 billion KRW. Kim Seok-hwan, a researcher at Mirae Asset Securities, said, “The intraday won appreciation narrowed, causing the index to give up some of its gains,” adding, “The cautious stance ahead of the U.S. FOMC limited the index’s upside.” The USD/KRW exchange rate, which showed a decline early in the session, ended the day at 1311.2 KRW, up 1.1 KRW.

Among the top market capitalization stocks, Samsung Electronics (0.17%), LG Energy Solution (0.37%), Samsung SDI (0.28%), and Hyundai Motor (0.4%) rose, while SK Hynix (-0.12%), Samsung Biologics (-0.37%), LG Chem (-0.88%), and NAVER (-0.5%) declined.

The KOSDAQ index closed at 802.53, up 0.04% (0.03 points) from the previous day. The index started the session with gains of around 0.5% but narrowed its gains to close nearly flat. Regarding investor activity, foreign and institutional investors sold stocks worth 166.1 billion KRW and 14.4 billion KRW respectively, while individual investors were the sole net buyers with purchases totaling 195.7 billion KRW.

During the session, expectations for the issuance of foreign game licenses in China and the lifting of the Hanhanryeong (Korean Wave ban) fueled strength in entertainment and gaming stocks. Among gaming stocks, Nexon Games (13%), Devsisters (12.9%), Dragonfly (4.2%), and T3 (4.1%) showed strong gains. In the entertainment and leisure sector, Cube Entertainment (5.2%), YG Entertainment (3.2%), and Paradise (2%) also performed well. Additionally, Gangwon Energy surged to the daily limit up by 29.95%. This followed reports in the afternoon that a subsidiary of Gangwon Energy had officially started operating a lithium hydroxide production plant.

Among the top market capitalization stocks, despite allegations of unfair trading by internal employees, EcoPro BM (0.25%) and EcoPro (4.22%) ended the day higher. Other gainers included L&F (1.11%), HLB (3.12%), and SM Entertainment (0.18%), while Celltrion Healthcare (-1.83%), Celltrion Pharm (-1.36%), and Kakao Games (-4.54%) declined.